Authorized Share Capital
“Section 85. Authorized Share Capital
(1) Every company shall have an authorized share capital which shall be divided into shares of a fixed amount.
(2) The authorized share capital of a company shall be stated in the memorandum of association.”
Issued Share Capital
“Section 86. Issued Share Capital
(1) The issued share capital of a company shall be the aggregate amount of the shares issued by the company.
(2) The issued share capital of a company may be increased or reduced in accordance with the provisions of this Act.”
Kinds of Shares
“Section 87. Kinds of Shares
(1) A company may issue different kinds of shares, including-
(a) ordinary shares;
(b) preference shares;
(c) deferred shares;
(d) redeemable preference shares.
(2) The rights and liabilities attached to each kind of share shall be as provided in the memorandum and articles of association.”
Share Certificates
“Section 88. Share Certificates
(1) A company shall issue a share certificate to every member who holds shares in the company.
(2) The share certificate shall specify the number and class of shares held by the member and the amount paid up on the shares.”
Transfer of Shares
“Section 89. Transfer of Shares
(1) A share in a company may be transferred by a member to another person.
(2) The transfer of a share shall be in writing and shall be signed by the transferor and the transferee.”
Allotment of Shares
“Section 90. Allotment of Shares
(1) A company may allot shares to any person who has applied for them.
(2) The allotment of shares shall be made in accordance with the provisions of this Act.”
Payment for Shares
“Section 91. Payment for Shares
(1) A company shall not issue shares at a discount.
(2) A company may issue shares for a consideration other than cash.”
Please note that these sections are subject to amendment and updating, and it’s always best to consult the most recent version of the Act or seek professional advice for specific guidance.
